Illinois Senate Democrats moved a massive gambling bill out of committee Friday and proposed new business taxes that could raise billions more dollars for expanded state programs.

Senate President Emil Jones, D-Chicago, outlined a series of proposals, including a corporate minimum tax, closing tax loopholes, and imposing corporate taxes on companies that are set up to pay personal income taxes instead.

“I’m not interested in taxing young working families,” Jones said.

Coupled with the gambling plan – which would add four new casinos and allow existing casinos to expand -- Jones’ proposals could generate nearly $5 billion for the state each year.

Jones outlined the plan during a closed-door meeting Friday with Gov. Rod Blagojevich and House Speaker Michael Madigan, D-Chicago.

“Senator Jones came in with some ideas for revenue generation,” Madigan said after the meeting. “We’re going to take those back to House members and try to get a reaction to them as soon as possible.”

Madigan also called it “significant” that Jones did not discuss Blagojevich’s gross receipts tax or increasing income or sales taxes, all measures that have little support in the House.

“At least in the Senate, they seem to be settling in with positions that gained some support in the House,” Madigan said.

Blagojevich also made a rare statement to reporters after the meeting.

“It’s a constructive offer to get the process moving,” Blagojevich said.

Blagojevich also indicated support for expanded gambling.

“The idea of more gaming is not something that I like, but I’m prepared to accept it if it means every citizen in our state can get access to affordable … health care.”

The Senate gambling plan was approved on a party-line, 8-5 vote in the Senate Executive Committee.

“We are certainly moving in the right direction here,” said Rep. Lou Lang, D-Skokie, who sponsored a similar bill in the House. “It will create lots of revenue that can be used for various needs.”

Republicans said that’s exactly what’s wrong with the bill. It will let programs expand when the state should live within its means.

Sen. James Clayborne, D-Belleville, the Senate sponsor acknowledged the bill will be changed before lawmakers have a final version in hand.

“This is a work in progress,” he said.

Among other things, the bill would give about $40 million in gaming revenue to Chicago State University, an institution favored by Jones. Republicans noted that the entire budget for the university now is only $34 million. Moreover, Auditor General William Holland issued a scathing audit of the university Thursday that found mismanagement of funds, including thousands of dollars in undocumented travel expenses.

Clayborne agreed that the bill should be rewritten to distribute the $40 million among all public universities in the state.

Madigan said the bill could face trouble in the House where House Republican Leader Tom Cross of Oswego is against adding new casinos. Cross favors a plan to expand existing casinos and use the estimated $500 million in revenue only to pay for a state construction bond program.

“Rep. Cross has told me that there would be zero Republican votes for the Senate bill,” Madigan said.

Without at least some Republican votes, a gaming bill probably will not pass the House.

Lawmakers left Springfield Friday for the Memorial Day weekend. They will not return until Monday afternoon. The General Assembly is scheduled to conclude the spring session May 31. After that date, it takes an extraordinary majority to pass bills, potentially making a budget compromise more difficult.